6 Easy Ways To Reduce Your IT Costs

Dependable, automated IT systems are vital to the smooth functioning of any small business. But as technology rapidly evolves, staff come and go, and your business needs change, it’s easy for IT costs to creep up. Those costs often include unnecessary, redundant, low business value software or systems.

The good news is, there are a few simple steps you can take to ensure you’re not overspending on your IT budget.

1. Check licenses and subscriptions

As your software needs change, it’s easy to lose track of the various licenses and software subscriptions used across your business. Have you purchased software subscriptions for workstations or staff members that no longer use them? Some licenses allow use on more than one workstation, so it’s worth checking to see if you have more licenses than you need.  

It’s also a good idea to look closely at the features you’ve subscribed to. You may be paying for functionality that you’re not using, for example, if you’ve subscribed to the Enterprise version of Office 365 but no one on your team uses analytics or VoIP, switching to the less expensive Business version could result in considerable savings over time.

While you’re thinking about licenses and subscriptions, it’s a good time to consider an IT audit. Performing a thorough audit once a year not only helps identify any superfluous IT costs but is also the first step in helping you plan strategically and cost-effectively for future growth.

2. Review your IT strategy

An IT strategy is a comprehensive plan that outlines how you will support the business goals set by your company, including how the business will adapt to updates and changes in technology and in the marketplace. It drives enterprise transformation and helps you identify the technology, solutions, and data needed to maximise customer and user experience.

Importantly, a good IT strategy may well end up paying for itself and reducing overall IT costs by minimising duplicate work, reducing errors, streamlining workflows, protecting vital data, and improving IT resilience.

Think Concepts can work with you to create a tailored IT strategy for your business. Find out more here.

3. Invest in infrastructure and security

The adage ‘an ounce of prevention is worth a pound of cure’ is very relevant when it comes to IT infrastructure and security.

Having robust, fit-for-purpose systems in place for your business will involve an upfront cost. But as anyone who has suffered a cyber-attack or has lost data through a system failure will attest, the cost to cure the problem will far exceed the prevention – and in many cases, the financial costs are just the beginning.

A good example is the May 2021 cyber-attack on the Waikato DHB which disabled its entire IT network of 680 computers – all of which needed to be manually restored from back-up files – paralysing services at its five hospitals. The DHB was warned about the risk of using out-of-date software that was susceptible to viruses and malware years before the attack. It’s an extreme example of what can happen when important infrastructure needs are overlooked, but it does show how important that ounce of prevention is when your business relies on IT.

4. Negotiate with vendors for better deals

From software licenses to eftpos lanes, the cost of IT across your business can quickly add up. However, just because you’re quoted on a price, it doesn’t mean you can’t ask for a better deal. Although we love a good bargain, Kiwis are not renowned for negotiating on price. And while some retailers and providers are firmer on prices than others, it’s always worth asking whether there’s room for negotiation. Just be sure that any discount or deal you’re offered is a genuine saving and you’re not signing up for more than you need to get a ‘discount’.

A good time to think about pricing structure is when contracts and subscriptions come up for renewal. Take the time to ensure the next contract is fit-for-purpose and you’ve considered any alternatives that might offer better value.

5. Move to the cloud

Most businesses have significantly changed the way they operate over the past few years. Many now have staff working remotely on a permanent basis. And while the transition involved a steep learning curve for some, a lot of businesses have seen considerable cost savings in moving from physical servers and systems to cloud-based infrastructure.

If you’re already using the cloud, it’s still worth checking that you’re on the best value plan for your business. For example, are you paying for more storage than you need? Are you taking full advantage of mobility and scalability features? Are you duplicating on-site and cloud-based services?

6. Use a managed service

Managing your IT needs yourself takes a considerable amount of time, and it’s not always easy or cost-effective. A managed IT service agreement means you have expert IT consultants on hand to manage all your IT needs, identify opportunities for systems improvements, and ensure you’re getting the best value for your business.

Your consultant gets to know you and your business and works in parallel with your business goals. It’s a smarter, more reliable alternative to break/fix or on-demand IT help.

Think Concepts managed service includes strategy consulting, IT maintenance, 24/7 monitoring, data backups, software updates, and project management. Our IT consultants are highly skilled and qualified to find the best value IT solutions for your business. You also have the benefit of tapping into our entire team of experts – it’s like having an internal IT team, but without the staff overheads.

Contact Think Concepts today to arrange an IT audit, talk about planning an IT strategy, or find out more about our managed service.